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Morrisons enjoys healthy rise in half-year profit

UK News | Published:

Chief executive David Potts said “a new Morrisons is beginning to take shape”.

Morrisons has reported rising half-year profits as the supermarket hailed seven consecutive quarters of growing sales.

Pre-tax profits increased 39.9% to £200 million in the six months to July 30, while turnover rose 4.8% to £8.42 billion.

Second-quarter like-for-like sales grew by 2.6%, while comparable sales over the second half as a whole rose 3%.

Morrisons chief executive David Potts, who is overseeing a turnaround of the business, said: “A new Morrisons is beginning to take shape.

“The capability of the team continues to improve and we are making strong headway with our plans to Fix, Rebuild and Grow.

Morrisons CEO David Potts
Morrisons CEO David Potts (Morrisons/PA)

Mr Potts has led a recovery of the grocery chain by investing in price cuts and calling time on under-performing stores in attempts to turn the page on the supermarket’s ill-fated era under ousted boss Dalton Philips.

In his latest attempt to reinvigorate the supermarket, Morrisons said in August that it will relaunch the Safeway brand after striking a deal with McColl’s to supply the convenience store chain with groceries.

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The partnership will see the supermarket supply Safeway and branded products to 1,300 convenience shops and 350 newsagents starting from January next year.

The move will help Morrisons secure wholesale sales of £700 million including tobacco by the end of next year, with the amount rising to £1 billion.

Partly as a result of the deal, Morrisons has increased its profit guidance for the full year.

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